Temasek takes a step closer to retail bonds with private equity fund portfolio

Temasek Holdings said on Wednesday that it is working towards offering bonds to retail investors, and announced a new vehicle for investments in private equity funds that institutions - and eventually individual investors - can put money in.

Temasek president Lee Theng Kiat noted in a statement: "One of Temasek's long held aspirations is to have long-term minded retail investors, especially retail investors in Singapore, co-invest alongside us."

Mr Lee added that the Singapore investment firm is hoping to start by offering Temasek bonds to retail investors "when there is a suitable opportunity to do so", and "phase in higher risk/return investment opportunities at a later stage".

On Wednesday, Temasek said it has launched a co-investment vehicle with broadly diversified holdings in 36 private equity funds. Temasek is the single-largest investor in this portfolio known as Astrea II, holding a 38 per cent share.

Temasek said this was part of its continuing efforts to develop co-investment platforms where diversified portfolios of assets can be made available to a broader base of investors, including retail investors in the long term.

Mr Dilhan Pillay Sandrasegara, Temasek head of enterprise development group, said: "Temasek continues to be an active investor in high-quality private equity or PE funds globally."

Such investments have created value for the firm in the form of direct returns, as well as opportunities for us to make further direct investments alongside the private equity fund managers, he added.

An active investor in private equity funds globally for over two decades, Temasek had earlier sponsored Astrea I in 2006 with a diversified and balanced portfolio of selected Temasek interests in high-quality private equity funds.

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